Just double check that your parents aren't required to file for other reasons! My dad was in a similar situation but forgot he had sold some stock that year (literally like $200 worth) and that triggered a filing requirement even though his Social Security wasn't taxable. The IRS computers automatically cross-reference all those 1099 forms so they'll know if there's any additional income. Better to check thoroughly than get a surprise letter later!

Great question! I went through this exact situation with my elderly parents last year. Based on what you've described, your parents likely don't need to file their own returns since Social Security and disability benefits are typically not taxable when they're the only income sources. For claiming them as dependents, you're on the right track! Since you're providing more than half their support and they're living with you, you can likely claim them as qualifying relatives. This would allow you to file as head of household, which has better tax rates and a higher standard deduction than single filing status. Just make sure to keep detailed records of all the expenses you're covering for them - housing, food, medical, utilities, etc. The IRS may want documentation if they ever question the dependency claim. Also, double-check that they don't have any other income sources (even small amounts from investments, pensions, or part-time work) that might change the filing requirements. You might want to consult with a tax professional or use the IRS Interactive Tax Assistant tool online to confirm your specific situation, but it sounds like you're handling this correctly!

Lemme break this down for everyone confused about 2024 processing: - Code 150 = Return processed - Code 806 = Withholding credits locked in - Codes 766/768 = Credits approved Typical timeline is 21 days but can take longer. Best way to know exactly where you stand is using taxr.ai - it analyzes all your codes and gives you a precise timeline. Way better than guessing or waiting on hold with IRS for hours. If you see these codes without any freeze codes (like 570/971), you're probably looking at 1-2 weeks max. But every return is different and can have unique processing patterns that affect timing.

Same here! Filed 2/4 and got the exact same codes on my transcript yesterday. The waiting is killing me but sounds like we're in good shape based on what everyone's saying. Fingers crossed we see that 846 code soon 🤞

Has anyone else noticed that the QBI thing is kinda confusing on purpose? like the gov doesn't want small business owners to get the full deduction? i did my taxes with three different software programs last year and got three different QBI numbers. ended up paying an accountant who found even more deductions the software missed.

This is exactly why I keep detailed records of everything throughout the year now! After getting burned by incorrect QBI calculations my first year with 1099 income, I learned to track not just my business expenses but also to save screenshots of how different tax software calculates things. For what it's worth, I've found that the IRS Publication 535 (Business Expenses) and Publication 334 (Tax Guide for Small Business) are really helpful for understanding the QBI deduction rules straight from the source. Sometimes the tax software explanations are oversimplified and miss important details like the self-employment tax adjustment. Also, if you're planning to have 1099 income again next year, consider making quarterly estimated tax payments. It's another complicated thing to figure out, but it beats getting hit with a huge tax bill and underpayment penalties at the end of the year!

Be careful with amended returns! If you're going to amend previous years to claim the LLC, make sure you're 100% certain of your position. The lookback period for audits is typically 3 years, but can be extended to 6 years if the IRS believes you've substantially understated your income. Amending multiple returns could trigger a review.

I think many of you are confusing different concepts. There's a difference between: 1) Scholarships/fellowships (generally taxable unless used for qualified educational expenses) 2) Qualified tuition reductions (tax-free benefit for employees/grad students performing services) 3) Employer education assistance (up to $5,250 tax-free) The OP specifically has a CS Dept fellowship that was applied directly to tuition. This looks like case #1, not #2. Can't claim LLC on this.

Nope not possible. PATH is PATH. Its literally in the law that they cant process these returns till after feb 15. buckle up buttercup 🤡

Just want to add that while you're waiting for PATH to lift, you can still check for other updates on your transcript like processing dates or any notices. The 846 code specifically won't show until after Feb 15th, but at least you can monitor that your return is moving through the system. Hang in there - the wait is brutal but it's the same for everyone with EITC/ACTC!